Tesla Ramps Up Model 3 Production

Author:Source:Datetime: 2018-02-13 10:11:53

While Tesla is struggling to ramp up production of its Model 3 car in the coming months, it’s got another aggressive growth target in front of it: a big production ramp-up for its energy storage products.

In Tesla’s fourth-quarter and full-year 2017 earnings report released Wednesday afternoon, the company said that it plans to at least triple the amount of energy storage capacity it deploys in 2018 compared to 2017.
“[T]he production ramp of our storage products is just as steep as with Model 3,” the company wrote in its letter to shareholders.

Tesla sells large-scale battery packs, called Powerpacks, that can be plugged into the electric grid and provide services for utilities and companies or be paired with solar and wind farms. The company also sells the smaller Powerwall unit that provides services, such as backup power, to homes and small businesses.

Tesla has long maintained that it sees big growth potential in its energy storage division, but it has prioritized its automotive business, including the Model 3. By setting aggressive growth targets for its energy storage division for the year, Tesla is showing it’s finally taking the prospect of growth in the sector more seriously.